Outdated Age Safety (OAS) is unquestionably a wonderful addition when Canadians enter retirement. Nevertheless, on the time of writing this text, OAS funds aren’t precisely huge. Which is why many traders is likely to be in search of methods to extend these funds, if not double them! So in the present day, let’s do exactly that by what traders get from OAS funds, what these targets could be, and a dividend inventory to assist double them.
Into OAS
Let’s begin with what doubling that OAS cost actually means, and what OAS is. OAS is a federal program paying month-to-month pensions to Canadians aged 65 and older, so long as they meet residency necessities. It’s funded from basic tax revenues, somewhat than by contributions just like the Canada Pension Plan (CPP).
At writing, the utmost OAS cost is $740.09 per thirty days, coming to $8,881.08 per yr for these aged between 65 and 74 years outdated. They enhance when you wait till 75, hitting $814.10 per thirty days or $9,769.20 per yr in 2025. However as talked about, these are most quantities.
That is the place the OAS clawback and restoration tax comes into play. The clawback threshold is available in when you hit an revenue that’s increased than $90,997 as of 2025. Then you have to begin paying again a part of your OAS funds. Even worse, that may be clawed again utterly when you hit $148,451 earlier than 75, and $154,196 after. And even with these most quantities, let’s be sincere, the quantities are modest in comparison with inflation and every day prices.
Begin doubling
With all this considered, it’s no surprise the typical OAS cost is much decrease. And it’s much more clear why many Canadians would possibly search to speculate it to show it into increased funds. Proper now, when you needed to double your OAS funds, that would imply creating one other $9,000 per yr or about $750 per thirty days, and that’s no straightforward feat.
To do that, you’ll want a dividend or funding that creates revenue that’s rising and sustainable. One which retains tempo with inflation. Plus, you have to handle taxable revenue fastidiously so that you don’t set off an OAS clawback, which is why a Tax-Free Financial savings Account (TFSA) is the best choice.
Then, look to create a diversified portfolio of dividend growers somewhat than specializing in only a excessive yield. Buyers need to be sure that dividend can maintain for many years. Which is why in the present day we’re going to contemplate Solar Life Monetary (TSX:SLF).
SLF
SLF inventory is a stable dividend inventory making it an ideal companion to OAS revenue. It combines dependable, rising money circulation with a powerful stability sheet and a yield that’s each beneficiant and sustainable. For Canadians aiming to double their OAS funds by way of dividends, Solar Life gives the sort of long-term dependability and progress that may hold these funds rising nicely into retirement.
Solar Life is one among Canada’s largest life insurance coverage and asset administration corporations, serving over 30 million purchasers worldwide. It operates by way of 4 key divisions, offering insurance coverage and wealth administration throughout Canada, the U.S. and Asia, in addition to asset administration. Presently, it oversees almost US$1.4 trillion in belongings underneath administration.
Even throughout market volatility the dividend inventory comes out robust, reporting within the second quarter of 2025 9% progress in web revenue yr over yr, and a 5% enhance in AUM. As for the dividend, it gives a $3.24 annual dividend, yielding 4% and lined by a 60% payout ratio. So when you needed to create about $9,000 in annual revenue, right here is how a lot you would wish to speculate for dividends alone.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SLF | $87.55 | 2,557 | $3.52 | $9,000 | Quarterly | $223,921 |
Backside line
SLF is the sort of dividend inventory that makes retirement easier. It’s massive, diversified, conservatively managed, and dedicated to dividend progress. The corporate’s international footprint offers it each resilience and long-term growth potential, whereas its stable stability sheet ensures the dividend stays safe.
When held in a TFSA or RRSP, these dividends compound quietly and tax-free. And bear in mind, you’ll be able to all the time chip away in direction of these excessive funds somewhat than bulk make investments abruptly. Over time, your portfolio turns into its personal pension, one which comfortably doubles your OAS funds and retains rising lengthy after you’ve stopped working.
